AI Fiesta or AI Scam? Dhruv Rathee’s New Venture Sparks Controversy

Dhruv Rathee’s AI Fiesta Startup Faces ‘Scam’ Charges From Tech Community

The420.in
3 Min Read

YouTuber Dhruv Rathee, in collaboration with TagMango entrepreneurs Mohammad Hasan and Divyanshu Damani, launched AI Fiesta, pitched as India’s first AI “super-app.” The platform consolidates access to six leading AI models — ChatGPT, Gemini, Claude, Perplexity, Grok, and DeepSeek — under one subscription.

At ₹999 per month (₹834 with an annual plan), the service promised affordability compared to paying separately for each tool. Rathee marketed it as a one-stop solution for writing, research, image generation, and prompt refinement, while also highlighting UPI-based subscriptions, which even global players like OpenAI haven’t fully rolled out.

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Industry reports claimed AI Fiesta hit $3 million in annual recurring revenue within 36 hours, underscoring massive early traction.

Reddit Raises the Alarm

Despite the initial buzz, Reddit communities quickly questioned AI Fiesta’s value. One user in r/IndiaTech flagged a crucial detail:

“The plan gives you 400,000 tokens/month, but they aren’t just for ChatGPT. Every response eats from that same token pool. You’re getting much less than it seems.”

This token-sharing model meant that instead of unlimited or separate quotas, users had to ration usage across multiple AI models, undermining the platform’s marketing claims.

Others accused the startup of repackaging third-party services without innovation. “Once a scammer, always a scammer,” one Redditor wrote, calling the business model exploitative.

Twitter Adds Fuel to the Fire

On X (Twitter), prominent voices echoed skepticism.

  • Theo, founder of T3.gg, noted that AI Fiesta bragged about being built by “Y Combinator alumni” even though T3 Chat, a platform genuinely backed by Y Combinator, never used such positioning.

  • Rakesh (@GyanTherapy) argued the platform is “useless for serious AI tool users,” saying it only works for basic queries but fails in research, coding, or content creation. He described it as just a “third-party service” passing answers from actual AI models.

  • Avarodh (@avarodhthreads1) accused Rathee of scamming followers with misleading token math: “GPT’s free version gives 57 million tokens, while Rathee charges ₹1000 for 400k tokens. This is how he made his followers cash cows.”

Silence From the Founders

As the debate escalated, Dhruv Rathee has yet to directly respond to the allegations. Neither he nor his co-founders clarified the concerns around token limits, pricing comparisons, or claims of being “Y Combinator alumni.”

The episode highlights the tension in India’s growing AI market: the promise of accessible, bundled tools for millions of digital-first users, versus the risk of overselling and under-delivering.

For Rathee, whose influence spans millions of online followers, AI Fiesta’s trajectory may depend less on flashy numbers and more on whether transparency can replace skepticism.

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